Retail Industry Bigbazar

PROJECT REPORT
ON
RETAIL INDUSTRY
COMPANY - BIG BAZAAR
SUBMITTED TO: SUBMITTED BY:

EXECUTIVE SUMMARY
Advertising and Sales promotion is indispensable part of any Retail business. They help to entice
the customers from local retailer of unorganized system to the big retail companies of organized
system .In organized retail system sales promotion and advertising is even far more important
because they need a big force to drag them into these giant retail stores.
Big Bazaar has been using these promotional techniques since its establishment that helps it in
maintaining as well as increasing its sales. It mainly counts on it sales promotion techniques and
advertising that have always been unique.
In the project “Retail Industry with special reference to the company Big Bazaar” We have tried
to study all the big advertising and sales promotion campaigns of Big Bazaar. Apart from the
study part I have tried to find whether Advertising and Sales promotion of Big Bazaar really
influences the sales of Big Bazaar, taking it as hypothesis of my study I started up with my
research.
We began our research with the help of primary source of collecting the data that is
Questionnaire containing questions that could be used to measure the effect of advertising and
Sales promotion on sales of Big Bazaar .We conducted the survey basically in primary and
secondary area of research i.e Gurgaon and Dwarka. The sample size taken by me was 100.
We visited Big Bazaar of Gurgaon to study their set up and the sales promotion techniques they
are using, we contacted their authorities present in the hyper market to fill my questionnaire to
impart me with knowledge about Big Bazaar.
On the basis of analysis of questionnaires and various results based on pie chart and bar graphs ,
We came on the conclusion that only sales promotion has significant effect on the sales of Big
Bazaar ,though it has been trying hard for advertising but it has to put more efforts to make its
effect on the sales of Big bazaar and make people aware .
We have tried our best efforts to keep our research fair and unbiased
ACKNOWLEDGEMENT
We would like to thank Prof. Sanjana Sapra and my guide for assigning me this highly learning
project and further enlightening me with his immense knowledge and helping me out to carry out
this project . She has helped us in finding a project of our interest and then to delve deeply in the
topic.
Our sincere regards to Prof. Subroto Ganguly, Professor of Marketing department, for guiding
us in completion of this project work.
We would like to give special thanks to authorities of Big Bazaar who gave their valuable time
and suggestions to make improvement in our report time to time.
TABLE OF CONTENTS
1.Executive Summary 2
2.Acknowledgement 3
3.Introduction 5-10
1Retail Industry in India
2Big Bazaar
4.Literature Review 11-40
1What is Retailing
2Types of Retailing
3Global Retail Industry – An Overview
4Major Player in Retail Industry
5.Research Objective 41
6.Research Methodology 42
7.Data Analysis 43-64
8.Findings 65
9.Recommendations & Limitations 66
10.Learning & Conclusion 67
11.Bibliography 68
12.Annexure 69-71
INTRODUCTION
Every business conducted for the purpose of selling or offering for sale any goods, wares, or
merchandise, other than as a part of a "wholesale business" to the final consumer can be defined as
retail business
Retail is the second-largest industry in the United States both in number of establishments and
number of employees. The U.S. retail industry generates $3.8 trillion in retail sales annually ($4.2
trillion if food service sales are included), approximately $11,993 per capita. The retail sector is also
one of the largest worldwide.
Wal-Mart is the world's largest retailer and the world's largest company with more than $312 billion
(USD) in sales annually. Wal-Mart employs 1.3 million associates in the United States and more than
400,000 internationally. The second largest retailer in the world is France's Carrefour.
RETAIL INDUSTRY IN INDIA
Retail is India’s largest industry, accounting for over 10 per cent of the country’s GDP and around
eight per cent of the employment. Retail industry in India is at the crossroads. It has emerged as one
of the most dynamic and fast paced industries with several players entering the market. But because
of the heavy initial investments required, break even is difficult to achieve and many of these players
have not tasted success so far. However, the future is promising; the market is growing, government
policies are becoming more favorable and emerging technologies are facilitating operations.
Retailing in India is gradually inching its way toward becoming the next boom industry. The whole
concept of shopping has altered in terms of format and consumer buying behavior, ushering in a
revolution in shopping in India. Modern retail has entered India as seen in sprawling shopping
centres, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under
one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing
and growth in the consumption by the Indian population is going to take a higher growth trajectory.
The Indian population is witnessing a significant change in its demographics. A large young working
population with median age of 24 years, nuclear families in urban areas, along with increasing
working-women population and emerging opportunities in the services sector are going to be the key
growth drivers of the organized retail sector in India.
India represents an economic opportunity on a massive scale, both as a global base and as a domestic
market. Indian Retail sector consists of small family-owned stores, located in residential areas, with a
shop floor of less than 500 square feet. At present the organized sector accounts for only 2 to 4% of
the total market although this is expected to rise by 20 to 25% on YOY basis.
Retail growth in the coming five years is expected to be stronger than GDP growth, driven by
changing lifestyles and by strong income growth, which in turn will be supported by favorable
demographic patterns and the extent to which organized retailers succeed in reaching lower down the
income scale to reach potential consumers towards the bottom of the consumer pyramid. Growing
consumer credit will also help in boosting consumer demand.
The structure of retailing will also develop rapidly. Shopping malls are becoming increasingly
common in large cities, and announced development plans project at least 150 new shopping malls
by 2008. The number of department stores is growing much faster than overall retail, at an annual
24%. Supermarkets have been taking an increasing share of general food and grocery trade over the
last two decades.
However, Distribution continues to improve, but it still remains a major inefficiency. Poor quality of
infrastructure, coupled with poor quality of the distribution sector, results in logistics costs that are
very high as a proportion of GDP, and inventories, which have to be maintained at an unusually high
level. Distribution and marketing is a huge cost in Indian consumer markets. It's a lot easier to cut
manufacturing costs than it is to cut distribution and marketing costs.
Also, government has relaxed regulatory controls on foreign direct investment (FDI) considerably in
recent years, while retailing currently remains closed to FDI. However, the Indian government has
indicated in 2005 that liberalization of direct investment in retailing is under active consideration. It
has allowed 51% FDI in "single brand" retail.
The next cycle of change in Indian consumer markets will be the arrival of foreign players in
consumer retailing. Although FDI remains highly restricted in retailing, most companies believe that
will not be for long. Indian companies know Indian markets better, but foreign players will come in
and challenge the locals by sheer cash power, the power to drive down prices. That will be the
coming struggle.
The key players currently operating in the Indian retail industry including pantaloons, Future Group,
Trent Ltd, RPG Enterprise, Vishal Retail Ltd, Shoppers Stop Ltd, Bata India Ltd, Provogue India Ltd
and Videocon Appliances Ltd. This section analyses these players on the basis of current strategy
they are pursuing and their possible future strategic direction.
BIG BAZAAR
Big Bazaar is a chain of shopping malls in India currently with 29 outlets, owned by the Pantaloon
Group. It works on same the economy model as Wal-Mart and has had considerable success in many
Indian cities and small towns. The idea was pioneered by entrepreneur Kishore Biyani, the head of
Pantaloon Retail India Ltd.
It all started in 2001, when the first Big Bazaar store was opened in Kolkata, followed by the second
store in Hyderabad. At that time, these were the first stores based on this format, and only had
apparel and general merchandise in their stores. Business picked up pace, and in July 2002, at the
time of adding the fourth Big Bazaar outlet at Lower Parel in Mumbai, it introduced the first Food
Bazaar, too, which managed to get tremendous response from day one itself. they been getting a very
high footfall for every new store that they have opened. Today, it has reached a stage where it has 25
Big Bazaar and 38. Food Bazaar outlets all over the country. Having surpassed the number of Big
Bazaar outlets, Food Bazaar also has standalone formats. There are four such formats in Mumbai,
and one each in Ghaziabad (Uttar Pradesh), Kolkata and Bangalore
Isse sasta aur accha kahin nahi

Shop till you drop! Big Bazaar has democratised shopping in India and is so much more than a
hypermarket. Here, you will find over 170,000 products under one roof that cater to every need of a
family, making Big Bazaar India’s favourite shopping destination.
At Big Bazaar, you will get the best products at the best prices -- this is our guarantee. From apparel
to general merchandise like plastics, home furnishings, utensils, crockery, cutlery, sports goods, car
accessories, books and music, computer accessories and many, many more. Big Bazaar is the
destination where you get products available at prices lower than the MRP, setting a new level of
standard in price, convenience and quality.If you are a fashion conscious buyer who wants great
clothes at great prices, Big Bazaar is the place to be. Leveraging on the company’s inherent strength
of fashion, Big Bazaar has created a strong value-for-money proposition for its customers. This
highlights the uniqueness of Big Bazaar as compared to traditional hypermarkets, which principally
revolve around food, groceries and general merchandise.
Boasting of an impressive array of private labels, Big Bazaar is continually striving to provide
customers with a ‘complete’ look. So be it men’s wear, women’s wear, kids wear, sportswear or
party wear, Big Bazaar fashions has it all!
Big Bazaar is both big and a bazaar. It is unlike, say, a Walmart or even a Food world. Big Bazaar is
almost an air-conditioned version of any Indian bazaar. It is a slightly orderly and organised version
of, say Chickpet for Bangalore guys or Dadar for Mumbaiites. There is a huge crowd which can
move in almost any direction. You can buy anything (pretty much everything is available at Big
Bazaar). It is not a place where you can browse through at leisure and pick up a few things here and
there. This is a place if you are serious about your shopping. And the worst part is at the checkout
counter, where the line can stretch as much as a line for a famous ganpati pandal or a cricket match.
Parking is a pain too.
But, the place ticks. In both Hyderabad and Bangalore, the outlets dont have a place for customers to
stand esp on weekends. Customers wait outside it some before it opens in the morning. Bombay is
slightly better. Big Bazaar offers good prices. Really good prices. Prices that tempt. Apart from
simple price chopping, there are deals (2 for the price of 1 or prices reduced on a combination etc).
The perception of Big Bazaar is that it facilitates some serious savings on grocery shopping. And it
works. And make no mistake, it attracts the well heeled as much as it attracts Raju from across the
street.
That has worked for Big Bazaar is that it has been able to connect with the customers in the right
manner. They had filled a need gap which was there in the market. Apart from that, their competence
in providing products at lowest prices and great quality in an ambience much better than what the
customers were used to, has also contributed to their success.
The focus is on continuing to provide very high ‘value for money’ to customers by providing
exciting offers throughout the year.
It will be facilitated by constantly working on its buying and supply chain efficiencies. Having
already achieved economies of scale and size, they intend to better their gains by opening new stores
regularly.
One of the key philosophies of Mr Biyani that is highly followed is ‘Rewrite rules, retain values.’ In
essence, it means they don’t take anything as fixed. They are constantly on the lookout for finding
new ways and means to improve the current state of affairs. Thus, innovation is a very important
aspect of their working strategy. The other very important philosophy is that of Indian ness. All their
concepts and formats as well as the way they go about things are very Indian. The way Big Bazaar is
designed and the way the whole concept has developed reflects a sense of Indian ness
Glimpses of few Advertising and Sales Promotion Campaigns of Big Bazaar
Cost Effective ad for Surprisingly Inexpensive Big Bazaar
This is a well articulated print advertisement campaign for Big Bazaar to highlight their unique
marketing strength, ‘extreme low price’. However, even before this idea has been exercised to
highlight a product by placing it in a stark different environment. Nevertheless, this advertisement
campaign is very well crafted out. Further, the ad is not at all confusing and it straight way conveys
the message without loosing focus.
Like the marketing strength of the company, this campaign is too cost effective. Further, the ad has
the capacity to attract immediate people’s attention. The tag line of the ad is ‘Surprisingly
Inexpensive’. The ad has been created by Mudra DDB Communication.
The company recorded around one million foot fall from 26 th to 28th January this year in 2007,which
were termed as “SABSE SASTE 3 DIN”,”MAHA SAVING OFFER”,which was 43 crore last year .
This was a special print advertisement of Big Bazaar prepared for women’s day sales promotion
,where through the advertisement it is shown that forget about the common females even all hindu
goddesses are busy in shopping at BIG bazaar and celebrating their day.
This was the print advertisement that Big Bazaar came out with which was regarding its exchange
offer sales promotion, where an old man is hiding himself behind sofa ,because now every old thing
can be exchanged with new one at Big Bazaar.
VISAKHAPATNAM: The boys and girls oozed with confidence as they hit the ramp showcasing the
latest trends in apparel collections at the Big Bazaar. It was a fashion show with a difference as all
the 20 participants were sales staff of the company with no prior experience in modelling. They were
taught the nuances of walking on the ramp for a few hours before the show. While the boys displayed
sherwanis, shirts, formal wear and khadi wear, the girls displayed designer saris, capris, denim shirts
and tops. The show was organised as part of the price challenge promotion being held from May 13
to 19.
LITERATURE REVIEW
WHAT IS RETAILING
Retailing is all the activities involved in selling goods and services directly to final consumers
for their personal, non-business use.
The word retail is derived from the French word retailer, meaning to cut a piece off or to break
bulk. A retailer buys goods or products in large quantities from manufacturers or importers,
either directly or through a wholesaler, and then sells individual items or small quantities to the
general public or end user customers, usually in a shop, also called store. Retailers are at the end
of the supply chain. Marketers see retailing as part of their overall distribution strategy.
TYPES OF RETAILING
Retailing can be classified under two heads:
1Store Retailing
2Non-store Retailing
Store Retailing
Retail stores come in a variety of shapes and sizes, and new retail types keep emerging. They
can be classified by one or more of several characteristics:
1Amount of service
2Product line
3Relative prices
4Control of outlets
5Type of store cluster
1) AMOUNT OF SERVICE
Different products require different amounts of service, and customer service preferences vary:
Self-service retailers
Customers are willing to perform their own "locate-compare-select" process to save money.
Today, self-service is the basis of all discount operations, and typically is used by sellers of
convenience goods (such as supermarkets) and nationally branded, fast moving shopping goods
(such as catalog showrooms).
Limited service retailers
Retailers such as Sears and J. C. Penney, provide more sales assistance because they carry more
shopping goods about which consumers need information. Their increased operating costs result
in higher prices.
Full service retailers
Like specialty stores and first-class department stores, have salespeople to assist customers in
every phase of the shopping process. Full service stores usually carry more specialty goods for
which customers like to be waited on. They provide more liberal return policies, various credit
plans, free delivery, home servicing, and extras such as lounges and restaurants.
2) PRODUCT LINE:
Retailers can also be classified by the depth and breadth of their product assortments. The depth
of a product assortment refers to the number of different versions of each product that are offered
for sale. The breadth of the assortment refers to the number of different products that the store
carries.
Specialty stores carry a narrow product line with a deep assortment within that line. Examples
include stores selling sporting goods, books, furniture, electronics, flowers, or toys. Today,
specialty stores are flourishing, due to the increasing use of market segmentation, market
targeting, and product specialization.
A department store carries a wide variety of product lines. Each line is operated as a separate
department managed by specialist buyers and merchandisers.
Supermarkets are large, low-cost, low-margin, high-volume, self-service stores that carry a wide
variety of food, laundry, and household products.
Convenience stores are small stores that carry a limited line of high-turnover convenience goods.
These stores located near residential areas and remain open long hours, seven days a week.
Convenience stores must charge high prices to make up for higher operating costs and lower
sales volume, but they satisfy an important consumer need.
Superstores, combination stores, and hypermarkets are all larger than the conventional
supermarket. Many leading chains are moving toward superstores because their wider
assortment allows prices to be 5-6% higher than conventional supermarkets'. Combination stores
are combined food and drug stores. Examples are A&P's Family Marts and Wal-Mart's Super
centers. Hypermarkets combine discount, supermarket, and warehouse retailing, and operate like
a warehouse -- products in wire baskets are stacked high on metal racks, and forklifts move
through aisles during selling hours to restock shelves. They usually give discounts to customers
who carry their own heavy appliances and furniture out of the store.
3) RELATIVE PRICES
Retailers can also be classified by the prices they charge. Most retailers charge regular prices
and offer normal quality goods and customer service. Some offer higher quality goods and
service at higher prices. Retailers that feature low prices include:
Discount stores sell standard merchandise at lower prices by accepting lower margins and
selling higher volume. Occasional discounts or specials do not make a store a discount store. A
true discount store regularly sells its merchandise at lower prices, offering mostly national
brands, not inferior goods.
In recent years, facing intense competition from other discounters and department stores, many
discount retailers have "traded up" by improving their decor, adding new lines and services, and
opening suburban branches. This, of course, has led to higher costs and prices. With the
discounters trading up, off-price retailers have moved in to fill the low-price, high-volume gap.
They obtain a changing and unstable collection of higher-quality merchandise, often leftover
goods, overruns, and irregulars at reduced prices from manufacturers or other retailers. The
three main types of off-price retailers are factory outlets, independents, and warehouse clubs.
4) CONTROL OF OUTLETS:
About 80% of all retail stores are independents, accounting for 2/3 of retail sales. Other forms of
ownership include the corporate chain, the voluntary chain and retailer cooperative, the
franchise organization, and the merchandising conglomerate.
The chain store is one of the most important retail developments of this century. Corporate
chains appear in all types of retailing, but they are strongest in department, variety, food, drug,
shoe, and women's clothing stores. The size of corporate chains allows them to buy in large
quantities at lower prices, and chains gain promotional economies because their advertising costs
are spread out over many stores and over a large sales volume.
The great success of corporate chains caused many independents to band together under
contractual associations.
The voluntary chain is a wholesaler-sponsored group of independent retailers that engages in-
group buying and common merchandising.
The retailer cooperative is a group of independent retailers that set up a jointly- owned central
wholesale operations and conduct joint merchandising and promotion efforts.
A franchise is a contractual association between a manufacturer, wholesaler, or service

organization (the franchiser) and independent businesspeople (the franchisees) who buy the right
to own and operate one or more units in the franchise system. Franchising has been prominent in
fast-food companies, motels, gas stations, video stores, auto rentals, hair cutting salons, real
estate, and dozen of other goods and services. The compensation received by the franchiser may
include an initial fee, a royalty on sales, lease fees for equipment, and a share of the profits.
Merchandising conglomerates are corporations that combine several different retailing forms
under central ownership and share some distribution and management functions. Examples
include Dayton-Hudson and J. C. Penney.
5) TYPE OF STORE CLUSTER:
Most stores today cluster together to increase their customer pulling power and to give
consumers the convenience of one-stop shopping:
Central business districts A central business district comprises of banks, department stores,
specialty stores, and movie theatres.
A shopping center is a group of retail businesses planned, developed, owned, and managed as a
unit.
Non-Store Retailing
Although most goods and services are sold through stores, non-store retailing has been growing
much faster than store retailing.
Traditional store retailers are facing increasing sales competition from catalogs, direct mail,
telephone, home TV shopping shows, on-line computer shopping services, home and office
parties, and other direct retailing approaches.
Non-store retailing includes direct marketing, direct selling, and automatic vending.
Retail Formats
1) Department Store
About the format: Department stores are unique in terms of the shopping experience they offer,
the services they provide and atmosphere that they offer. Department stores operators, such as
Sears, Roebuck & Co and JC Penney, Karstadt Quelle continue to dominate traditional mixed
retailing on a global scale. However, they are in danger of being neither broad enough nor
specialised enough to compete in the modern retail environment. The department store format
requires significant purchasing power and economies of scale, and, consequently, most
department stores are chained multiples.
Characteristics:
Customers : Upper Class
Stock Management : 2 – 3 months
Strategy of Price Setting : Higher prices
Size : 30,000 – 1,00, 000 sq ft
Land Holding : Rental
Number of SKU’s : 1,00,000
Level of Service : High
Leading Players in the format : Sears, JC Penny, Karstadt Quelle

2) Supermarkets
Definition: Relatively large, low-cost, low-margin, high-volume, self service operation designed
to serve total needs for foods and household products. A conventional supermarket is a self
service food store offering groceries, meat, and produce with limited non food, mainly daily use
items. A Superstore is a large Supermarket with expanded service like bakery, sea food section.
About the format: Superstores and supermarkets are the backbone of the grocery sector in
developed markets. This area of the market has endured a difficult time – caught between the
wide assortments and low prices of super-centers and the narrow assortments and ultra-low
prices of discounters- but the mainstream retailers are fighting back with quality, convenience,
non-food concessions and foodservice solutions. Supermarkets are well-suited to consumer
demand for convenient shopping. Indeed, while supermarkets have traditionally been heavily
focused on the sale of grocery products, they seem to have expanded their product offer to
include an ever-broader range of nonfood goods. As a result, supermarkets were capable of
fulfilling a growing proportion of consumers' weekly shopping needs.
Characteristics:
Customers : For all
Stock Management : 10 – 15 days
Strategy of Price Setting : Mixed Price
Size : 10,000 – 30,000 sq ft

Number of SKU’s : 20,000 – 30,000
Level of Service : Average
Leading Players in the format : Royal Ahold, Kroger

3) Discount stores
About the format: The traditional German-style hard discount store (low prices, limited
assortment, high own brand participation) has exerted an impact in the world retail scenario, not
least thanks to the quick expansion of the format’s originator, Aldi and Lidl another German
discounter. Alongside food discount stores there are a number of growing general merchandise
discounters that are making sizeable inroads on the grocery market, such as Family Dollar,
Dollar Tree and Dollar General. Aggressive discounting characterised food retailing which
means retailers of all types were forced to cut costs to allow them to keep their prices
competitive. The increasing prevalence of discounting resulted from the expansion of major
retailers with a discounting focus, such as Wal-Mart, and economic difficulties in major markets
which served to increase consumer price sensitivity.
Characteristics:
Customers : Medium or Low Class
Stock Management : 30 days
Strategy of Price Setting : Incredibly low
Size : Deep Discounters: 3000 – 5000 sq ft
Soft Discounters: 60,000-80,000 sq ft
Number of SKU’s : Deep Discounters: 1000 – 2500
Soft Discounters: 30,000 - 60,000

Level of Service : Low
Leading Players in the format : Aldi, Lidl, Dollar General
4) Hypermarts or Supercenter
About the format: Europe is the home of the Hypermart – a pioneering food and non-food
destination format developed by the French and exported to the USA in the 1980s. The format
was an initial success in US, but retailers such as Meijer and Wal-Mart took the concept and
gave it an American twist to much acclaim and commercial success – the Supercenter was born.
While Meijer is arguably the innovator and more quality-led practitioner of supercentres, it is
Wal-Mart that has become the trailblazer, backed up by a phenomenal financial arsenal.
Hypermarts or Supercenters are well-suited to the modern retail environment. Their considerable
size allows them to cater for the growing demand for convenient shopping options, as they offer
an extensive range of products under a single roof. Moreover, the major Hypermart retailers are
capable of exploiting significant economies of scale to underpin discounting strategies, and thus
appeal to consumers' growing expectations of low prices. The strategy followed is to gain market
share over a broad catchment’s zone and increase store traffic with regular promotions and
competitive prices compared with the lowest in the market. Also develop lines of store brands
with a reputation for quality.
Characteristics:
Customers : Medium and Lower class
Stock Management : 30-45 days
Strategy of Price Setting : Lowering prices as much as possible
Size : 1,00,000 – 2,50,000 sq ft
Number of SKU’s : 50,000 to 70,000
Level of Service : Average
Leading Players in the format : Wal-Mart, Carrefour
5) Convenience stores
About the format: Unlike in much of Europe, where the concept of convenience stores has been
largely unrelated, the convenience store and the gas station have long been closely associated in
the USA. While developments in the food retailing sector during the review period were heavily
influenced by major players' discounting strategies, the strong performance of convenience stores
underlined retailers' ongoing capacity to generate added value by providing a concept that fits
with consumers' modern lifestyles. As factors such as the rising number of women entering paid
employment, an increase in single-occupancy households and extended working hours have
increased the pressure on consumers' time, the demand for conveniently located stores with long
opening hours has increased significantly.
Characteristics:
Customers : Customers requiring convenience
Stock Management : 15 – 20 days
Strategy of Price Setting : High (Price higher than supermarket)
Size : 2000 – 3000 sq ft
Number of SKU’s : 2000 – 3000 [also eatables]
Leading Players in the format : 7-Eleven
6) Specialty Stores
About the format: In recent years the specialty apparel stores has been one of the weakest,
slowest – growing areas in retailing.
Characteristics:
Customers : For all
Stock Management : 1 month for locally stocked goods and up to 7 months for
imported goods
Strategy of Price Setting : Quite high prices
Size : 50,000 – 1,20,000 sq ft
Number of SKU’s : 5000
Leading Players in the format : Ikea, Gap
RETAIL INDUSTRY: AN OVERVIEW
The Global Retail Industry
The global retail industry has traveled a long way from a small beginning to an industry where
the world wide retail sales alone are today valued at $ 7 trillion (Source: 2006 Global Retail
Report, Deloitte Touché Tohmatsu). The top 200 retailers alone account for 30% of worldwide
demand. Retail sales being generally driven by people’s ability (disposable income) and
willingness (consumer confidence) to buy, compliments the fact that the money spent on
household consumption worldwide increased 68% between 1980 and 2005.
GLOBAL 200 HIGHLIGHTS

The leader has in-disputably been the USA where some two-thirds or $ 6.6 trillions out of the $
10 trillions American economy is consumer spending. About 40% of that ($ 3 trillions) is
spending on discretionary products and services. Retail turnover in the EU is approximately
Euros 2000 billion and the sector average growth looks to be following an upward pattern. The
Asian economies (excluding Japan) are expected to grow at 6% consistently till 2007-08.
Positive forces at work in retail consumer markets today include high rates of personal
expenditures, low interest rates, low unemployment and very low inflation. Negative factors that
hold retail sales back involve weakening consumer confidence. Retail has played a major role
world over in increasing productivity across a wide range of consumer goods and services .The
impact can be best seen in countries like U.S.A., U.K., Mexico, Thailand and more recently
China. Economies of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are
also heavily assisted by the retail sector.
Retail… Has Evolved
On the Global Retail Stage, little has remained the same over the last decade. One of the few
similarities with today is that Wal-Mart was ranked the top retailer in the world then and it still
holds that distinction. Other than Wal-Mart’s dominance, there’s little about today’s environment
that looks like the mid-1990s. The global economy has changed, consumer demand has shifted,
and retailers’ operating systems today are infused with far more technology than was the case six
years ago.
Beyond Borders: High Potential In Emerging Markets
Saturated home markets, fierce competition and restrictive legislation have relentlessly pushed
major retailers into the globalization mode. Since the mid-‘90s, countless Governments have
opened up their economies to free markets & foreign investment that has been a plus for many a
retailer. Also, emerging markets have been witnessing growing urbanization leading to
significant shifts in consumer demand and behavior significant concentrations of consumers
capable of supporting large-scale formats, such as supermarkets and hyper marts. The potential
in them is thus being unleashed with major western retailers expanding their operations there.
However, a more near-term concern, has been the global economic slowdown that has resulted
from dramatic cutback in corporate IT and other types of capital spending. Consumers
themselves have become much more price sensitive and conservative in their buying, particularly
in the more advanced economies.
INDIAN RETAIL INDUSTRY
Retailing in India is one of the significant contributors to the Indian economy and accounts for
35% of the GDP. However, this sector is in a fragmented state with over 12 million outlets
operating in the country and only 4% of them being larger than 500 sq ft in size. This is in
comparison to 0.9 million outlets in USA, catering to more than 13 times of the total retail
market size. Thus, India has the highest number of outlets per capita in the world with a widely
spread retail network but with the lowest per capita retail space (@ 2 sq ft per person as
compared to 16 sq ft per person for USA).
Organiz ed Retailing - Market Siz e

300 30
250 25
200 20
150 15
100 10
50 5
0 0
2004 2005 2006 2007 2008 2009 2010
Total Retailing Mark et Figures in USD Mn
Organiz ed Retailing
The Indian retailing industry is currently estimated at $205 b (Rs.930, 000 Crores) and is
expected to grow at 5% p.a. The current size of the organized retailing market is $6 b (Rs.28,000
Crores), thereby, a mere 3% of the total retailing market with a projected growth rate of 25 –
30% p.a. and is estimated to become $8 b (Rs.35,000 Crores) by 2005 and $24 b (Rs.100,000
Crores) by 2010, with its contribution to total retailing sales likely to rise to 9% by decade end.
Share of Organized Retailing -

2010
9%
Share of Organized Retailing -

2004
3%
The Organized Retailing Pie
Books, music &

Jewellery & gifts Mobile handsets
watches 3% 3%
7%
Others
Catering
4%
services
7%
Furniture &
furnishings
8%
Footwear
9%
Clothing & textile
39%
Consumer
durables Food & grocery
9% 11%
Government policy for Retail sector in India
There has been vigorous opposition to FDI in retailing from small traders who fear that foreign
retailing companies would take away their business, leading to the closure of many small trading
businesses and result in considerable unemployment. Given the political clout of the small
trading community, owing to their enormous numbers, the government has barred FDI in
retailing since 1997. Therefore till January 2006, foreign retailers can only enter the retailing
sector through franchising agreements.
As a big move to liberalize FDI regime, on January 24 the cabinet approved new FDI norms for
retailing. It has allowed up to 51% FDI in single brand retailing, as there is a strong view that
FDI in this segment would not displace jobs or impact the local industry but help create
employment.
This liberalization is good news for many of the world's marketers of top labels, who currently
sell their goods through the country's handful of homegrown, domestically owned and operated
retailers. Potentially, any single branded consumer product would be permitted to put up money
for a majority stake in retail shops selling one brand.
EVOLUTION OF INDIAN RETAIL

The Indian retail sector has evolved from traditionally being a largely informal sector to a formal
one, structured by international standards.
While earlier it was largely characterized by small retailers and high prevalence of tax evasions
and non existent labor laws, things have changed otherwise today.
While earlier the Indian retail was dominated by mom n pop stores (kiranas, as called in India),
street markets and kiosks, a large number of international players have entered the Indian retail
industry, changing the whole face of how product distribution was done in India.
Traditional Retail Formats
Traditionally retail has always been a no-frill-direct- selling layout. The retailers were merely
shop owners (usually), who would ideally sit at a selling place full of products and follow
customer’s instructions as and when they come, and bill them. Nothing less, nothing more.
Though, they are not completely non-existent today, neither are they totally out-of-sync with
today’s consumer needs, but a lot of them are being driven out of business (especially in the
Developed World) owing to the better alternatives of modern, more efficient formats which are
more convenient, cost efficient and have an associated feel-good factor owing to the battery of
services offered.
Traditional retail formats have ideally been of 4 forms, viz. mom n’ pop stores, street markets,
kiosks and exclusive/multi brand outlets.
Mom n’ pop stores, (usually called kirana stores in India) are the oldest retail formats. The
diversity of products offered depends on the scale of operations and the money invested. Thus,
the product lines were usually limited. The pricing was also usually cost-plus pricing for self
manufacturing and MRP for branded items. Promotions were usually nil and distributions were
also limited, as products were sold to only those customers who willingly visited the shop. Thus,
the physical evidence factor, or the location, was a vital factor in deciding the success and
footfalls of the shops. People factor was also important, as the more the retailer used to know and
befriend the nearby residents, more was his regular clientele and higher was his shop’s loyalty.
Street market is an outdoor market such as traditionally held in a market square in a market
town, and are often held only on particular days of the week. Very similar markets or bazaars can
also be found in large enclosed spaces, instead of on a street. In Hong Kong there are street
markets of various kinds such as fresh foods, clothing, cooked foods, flowers, and even
electronics. Some of them are gradually being replaced by shopping centres, markets in
municipal service buildings, and supermarkets while some become trourist attractions like Tung
Choi Street and Apliu Street. Some examples of street markets are: Berwick Street Market,
Camden Market, East Street Market and Portobello Road Market in London, Janpath in Delhi
etc….
A street market in Hong Kong

The only way this format differs from the above is in its way of pricing which is done on the
basis of perceived benefit and is subject to differ with different customers. Also, in this format,
unlike all others, there is a lot of room for bargaining.
Life Cycle of Retail Formats
Formats Adopted by Key Players
Retailer Original Format Later Formats

RPG Retail Super Market(Food Hyper Market(Spencer)
World) Specialty Store
(Music World)
Pantaloon Branded Outlets Hypermarket(Big Bazaar)

(Pantaloon Shoppe)
Piramal’s Departmental Store Discount Store( Tru mart)
K Raheja Group Departmental Store Supermarket(TBA)

(Shoppers Stop) Hypermarket(Hypercity)
Specialty
Store(Crossword)
Tata/Trent Departmental Store Hypermarket
(Westside) ( Star India Bazaar)
In the above graph, we can see the stage of the life cycle of different retail formats in the western
countries. In India it is difficult to predict if the same trend will be evident as organized retailing
and modern retailing have a long way to go in terms of market coverage. However if we focus on
the shift in retail formats by various big retail houses, it would not be wrong to say that retail in
India will see similar evolution as seen by its western counterparts.
We can see from the above table that retail powerhouses like Pantaloon, K Raheja Group and
Tata Group have shifted focus from department stores and stand alone single brand stores to new
formats like hypermarkets and super centers. It is very important to understand the consumer
habits and see if the market is ready to accept a new format. If a format enters a pre mature
market, it might not succeed as consumers are not willing to change their old buying habits. On
the other hand if a format enters in a late stage, it has to face heavy competition and loses the
first mover advantage. Therefore it is important to strike with a format at the right time and reap
maximum benefits.
EMERGING TRENDS IN INDIAN RETAIL INDUSTRY
‘Tier-II’ Phenomenon
Small towns with a population of 0.5 – 1 million {like Surat, Lucknow, Dehra Dun, Vijaywada,
Bhopal, Indore, Vadodara, Coimbatore, Nasik, Bhubaneswar, Varanasi, and Ludhiana etc}, are
witnessing a defined increase in disposable income coupled with high aspirational levels leading
to enhanced spending on consumer goods along with lesser aversion to credit. With consumption
in metros already being exploited {85% of retail sales as of now}, these Tier-II areas are fresh
targets and are expected to contribute 20-25% of organized retailing sales.
Retailers are introducing contemporary retail formats such as hypermarkets and supermarkets in
these new pockets of growth. Mall development activity in these small towns is also picking up,
creating quality space for retailers to fulfill their aggressive expansion plans. Keeping in view the
relatively smaller size of the market, the average size of a retail mall in Tier-II cities ranges
between 100,000 – 120,000 square feet in comparison with the larger metros where a number of
malls measure over 500,000 square feet.
Entry of International Players
The fight today is not between Big organized retail stores (3%) and Unorganized Kirana Shops
(97%), but its between global giants like Wal-Mart, Tesco and Shopper’s Stop, Pantaloons. Entry
of these global players will impact the way India Retailers operate, as much as it will change the
way Indian consumers live and do their shopping. They will no longer be just dependent on their
local Kirana shop for their everyday needs. They could just shop once a week or once a month at
comparatively cheaper rates and remain hassle free. Indian retailer will also need to quickly
come to terms with the market realities. On one hand they will fight size factor and on the other
hand great efficiencies
Emergence of New Retail Formats
Currently the retail sector in India is populated with the traditional mom-and-pop stores and
some 1000 odd supermarkets under organized retail chains. A daring few ventured into the
Hypermarket segment with successful results and this format is being fast replicated by other
players. This experience indicates that the Indian consumer has matured to the next level of
shopping experience. Given the Indian conditions and the vast diversity a single format may not
be possible for the national presence, but region specific formats may evolve. An interesting
observation is that of lack of presence of organized retail chains in the rural/semi-urban centers
as over 60% of Indian population is still in these parts. An ideal “no frills” model to start with
would be ideal for the rural markets; this would help to take them to the next level of
supermarket experience.
Specialty Malls
Keeping in mind the astonishing pace with which new supply is expected to enter the market,
many mall developers, in a bid to offer a distinctive value proposition, are planning to develop
‘specialty malls’. These niche developments shall emerge as one-stop destinations in their
chosen product categories. The Delhi-based Aerens Group has developed Gold Souk, an
exclusive jewellery mall that is already operational in Gurgaon and has ambitious plans to
replicate the concept across the country. Further, a number of analogous developments like a
‘Wedding Mall’ by Omaxe Group, ‘Automobile Mall’ etc are also in the offing. In line with
international trends, ‘Home Malls’ offering the entire range of building and interior décor
solutions are also coming up in various parts of the country including Pune (‘Ishanya’ promoted
by Deepak Fertilizers and Petrochemicals Corporation Ltd), Gurgaon & Kolkata.
Price Correction
Fallout of the surge in mall development activity shall be that developers will be forced to offer
retailers prime real estate spaces at costs lower than those prevailing today, as the space required
by retailers to fulfill their expansion plans is likely to be lesser than offered. This correction
could result in a more structured retail real estate market that would allow retailers a higher
margin on their real estate investments, thereby enabling them to expand faster. Further, the
relatively over-served cities could witness higher activity, as real estate space becomes more
affordable, thereby, reducing the break-even period for retailers. Moreover, under-served
markets could provide enough margins to retailers to compensate for loss of margins in some of
the over-served markets.
Traditional Retailers in Malls
The abundant supply of retail space has provided retailers with the leeway to experiment with
newer formats and product categories. Even traditional retailers like Benzer, Study by Janak,
Mehrason’s Jewellers etc are being pushed to modern retailing formats like shopping malls. Mall
developers shall have sufficient incentive to operate on a revenue-sharing pricing model as many
of these traditional retailers can generate higher sales per square foot as compared to the larger-
format department stores, which shall translate into higher revenue realizations for developers.
Transformation & Innovations of Supply Chain and Transportation logistics
To counter the unbeatable advantages of convenience of a hop, skip and a jump access and home
delivery, organized retailers seem to have just one option - offer attractive prices to the
consumer. A successful retailer's winning edge will therefore come from sourcing - how best it
can leverage its scale to drive merchandise costs down, increase stock turns and get better credit
terms from vendors. Efficient supply chains can achieve this objective and fuel demand. The
supply chain in India is full of inefficiencies- a result of inadequate infrastructure, too many
middlemen, complicated laws and an indifferent attitude. However, they are gradually getting
more matured with logistics service providers encouraged to innovate newer formats and models.
The logistics service providers have begun to come out with innovative customized solutions for
the retail chains like GATI’s model for distribution of Alphonso mangoes throughout India with
IT support.
Supplier Retailer Relationships
Organized retail increasing its presence, the traditional national distributor-regional wholesaler-
end retailer relationships are gradually getting streamlined. However this new model has been
affecting the relationships that the manufacturer enjoys with the traditional system which is still
the most dominant in the entire retail sector. The issue of differential pricing is being taken up at
several forums and the growing dissatisfaction among the traditional retailers is being addressed
by the manufacturers. However we see that in the long term, the role of a national distributor
would slowly fade away or get restricted to the rural/ upcountry regions. The supplier-retailer
relationship would come under severe pressure as each would try to squeeze maximum margins
out of other.
More use of Technology
Retailing, as discussed before, is at a nascent stage in India. The complicated information

systems and underlying technologies are in the process of being established. Most grocery
retailers like Food World have started tracking consumer purchases through CRM. The lifestyle
retailers through their `affinity clubs' and `reward clubs' are establishing their processes. The
traditional retailers will always continue to exist but organized retailers are working towards
revamping their business to obtain strategic advantages at various levels - market, cost,
knowledge and customer. With differentiating strategies - value for money, shopping experience,
variety, quality, discounts, advanced technologies, change in the equilibrium with manufacturers
and a thorough understanding of the consumer behavior, the ground is all set for the organized
retailers.
Community Involvement
Footfalls in most malls are observed to be significantly higher on weekends. To ensure regular
walk-ins on weekdays, mall developers have started to focus on involving the local community.
They have recognized that their centers need to be entertaining, and that shoppers want their
malls and town centers to blend with and reflect their own communities. Their philosophy today
is thus to create a center where people would want to stay well beyond their shopping time to
enact the rituals of urban life. Activities like karate classes and painting competitions for children
pull their salary-earning parents to visit the mall. For example, South-dale Mall, USA contains a
school, an auditorium, an ice-skating rink and even a zoo for the same reason. Dandia and
Navratre parties at Ansal Plaza and Festival parties at other malls also have the same objective.
Though such activities do not directly generate revenues for the mall developer, they go a long
way in making local consumers recognize the mall as a place where they can do a lot more than
merely shop. Further, components such as beauty parlors, card rooms etc also guarantee that
housewives visit the mall on weekdays.
Latest Developments in Retail

Retail at Gas Stations
The concept of retailing at Gas Stations has been a recent development and certain Chain of
stores like In and Out, 24/7, and food retailing outlets like Café Coffee Day and Dominos have
set shop at gas stations. However the concept will take time to pick up as consumer habits and
life style are yet to synchronize with this concept.
The concept of retailers at petrol pump has not caught the fancy of the population in India as
much as it has in the west due the difference in the way petrol is filled in tanks. While in India, a
pump attendant would fill petrol and then take the money; in western countries, the driver has to
do the needful on their own and then go inside the store to pay the cashier. The cashier
strategically sits at the end of the room so that as soon as the customer enters the aisle, he / she
has products placed in shelf’s on either side. Since there are some other customers who shop
besides paying for petrol ensures that few customers have to wait in the line while the first
transaction is taking place. This acts as another catalyst for waiting customers to have a look
around and get induced to purchase something. The mindset of the western populace has become
such that shopping at petrol pumps has become a leisure activity unlike India where one is in a
hurry to get the tank filled and push off. Moreover the Gas stations are small in size and placed
on crowded main roads which do not provide the ideal retailing environment for consumers.
MAJOR PLAYERS ENTER THE INDIAN RETAIL SECTOR
Some of India’ s biggest players have realized the potential that retail holds and are making
huge investments in this sector.
Reliance Retail
Reliance is set to revolutionize the retailing industry in India. The group is aggressively working
on introducing a pan-India network of retail outlets in multiple formats. A world class shopping
environment, state of art technology, a seamless supply chain infrastructure, a host of unique
value-added services and above all, unmatched customer experience, is what this initiative is all
about. The retail initiative of Reliance will be without a parallel in size and the planned
investment in this sector is expected at Rs. 40, 000 crores. Ensuring better returns to Indian
farmers and manufacturers and greater value for the Indian consumer, both in quality and
quantity, will be an integral feature of this project.
“The group's retail venture could one day wind up being India's equivalent of Wal-Mart.”
The Ambani enterprise is looking at a huge retailing push, which will cover the entire retailing
ambit, including setting up shopping malls and hyper malls all over the country; though no final
decision has been taken on this. The group plans to employee 5, 00, 000 employees in its retail
venture.
The malls will hawk everything, catering not just to mid to high-end customers but also to the
mass market. In short, Reliance Industries will try to give consumers a complete shopping
experience.
The Reliance Group is likely to be the sole India franchisee for reputed international retail
brands. Two names being mentioned in this context are those of US retail majors Target ($52
billion in revenue in 2005) and The Home Depot, an $81.5-billion company (2005 sales) with
earnings of $5.8 billion in 2005.
Bharti’s entry in the Retail Sector
Bharti Enterprises owned by Sunil Mittal is finalizing a massive retail foray. The group will be
entering into multi format retailing as they believe that a diverse country like India cannot have a
single retailing format. The company has joined hands with Wal-
Mart, world’s largest retailer to enter into a joint venture. The joint venture vehicle will be a
separate retail company. The agreement is being structured in a different manner to ensure that
Wal-Mart does not own any stake in the front-end, retail arm and that it does not violate any
existing rules. Sources close to the discussions said that there would be a profit-sharing
agreement between WAL-Mart and Bharti and clauses to enable Wal-Mart to pick up a stake in
the retail venture as and when FDI rules are changed.
1.The long-term effects of price promotions on category incidence, brand choice and purchase
quantity
Koen Pauwels, Dominique M. Hassens and S. Siddarth, Market Research Abstract from: Journal of
Marketing Research, Vol XXX1X, November 202, pp 421-439,
To what extent do price promotions have a long-term effect on the components of brand sales -
category incidence, brand choice, and purchase quantity? Persistence modelling on weekly sales data
of a perishable and a storable product derived from a scanner panel was undertaken and suggested,
amongst other things, that permanent promotion effects are virtually absent for each sales
component. The authors discuss the implications of their various findings and suggest areas for
further research.
2.Do sales promotions really work?
Edward Garner, Admap, July 2002, Issue 430, pp.30-32
Edward Garner discusses the value of sales promotion in brand building. His work is focused on deep
price cut promotions and he asks 'do they work?' He examines some marketing objectives which
sales promotions should meet:- (1) to gain new buyers for the brand, he concludes that it depends on
the length of the reference period, over a short period promotions can generate many new buyers but
over a long period it is difficult to obtain new buyers, (2) the objective of building loyalty to the
brand is examined and the author demonstrates that little loyalty or brand building takes place, in fact
deep cut price promotions could have the opposite effect by educating shoppers to value the offer
more than the brand. A study of consumer attitudes to price promotions is described with the
conclusion that many shoppers show promiscuous attitudes to shopping. The author , however,
agrees that many shoppers are loyal and describes a consumer panel which segments those with a
propensity to purchase/not to purchase products on offer which confirms the suspicion that there is a
tendency to continually promote to the same group of people. The conclusion is drawn that deep cut
price promotions do not provide a tool for long term brand building.
3.Developing synergies between promotions and brands in different price-quality tiers
Katherine N. Lemon and Stephen M. Nowlis, Market Research Abstract from: Journal of Marketing
Research, Vol XXX1X, May 2002, pp 171-185.
The authors examine synergies between different types of promotions, including interactions among
feature advertising, display, price promotions, and the price-quality tier of the brand. The authors
find, amongst other things, that high-tier brands benefit more than low-tier brands from price
promotions, displays, or feature advertising when these promotional tools are used by themselves.
The authors discuss theoretical implications as they relate to promotions and consumer decision
making and outline strategic implications for retailers and manufacturers
4.Why is Global Advertising still the Exception, not the Rule?
Jon Wilkins, Admap, February 2002, Issue 425
The author explains why truly global advertising is relatively limited and will be for some time. It
shares some research findings to offer insight into which success factors are genuinely 'international'.
This shows that few ads travel well. What are the factors that force a look beyond globally
harmonised advertising? The article suggests economic factors; media environment; advertising
regulations and category development. Some market differences intertwine with consumer
differences, these include:- cultural differences; communications syntax; experience with the brand.
Ipsos-ASI have pre-tested more than 25,000 ads across several countries and four main issues are
addressed:- (1) heavy presence of the brand; (2) quality of the message; (3) executional style; (4)
likeability. The results confirm that ads are refreshed and presented in an original way are more
likely to be influential and persuasive than the average. However, it also confirms that there are many
differences between specific countries within each of these themes.
5. An Investigation of Consumer Response to Sales Promotions in Developing Markets: A
Three-Country Analysis.
Lenard C Huff and Dana L. Alden, Journal of Advertising Research, Vol. 38, No. 3, May/June 1998,
pp.47-56
Considering the importance of consumer sales promotions in the marketing mix of many consumer
products throughout the world, there is a notable lack of research devoted to examining consumer
response to sales promotions outside North America and Western Europe. In addition, relatively little
research focuses on non-price promotions such as sweepstakes. This study develops and tests models
explaining consumers' attitudes toward and use of coupons (a price-oriented promotion) and
sweepstakes (a non-price promotion). The models are designed specificaliy for developing or newly
industrialized countries with collectivist cultures and are tested with consumer samples from Taiwan,
Thailand, and Malaysia. Aggregated data supports the modeis, yet cross-national differences also
suggest that managers should consider cultural and economic differences when planning sales
promotion strategy in developing or newly industrialized countries.
6. Who will win India's retail war?
Gouri Shukla May 03, 2005
Retailing is like riding a bicycle, you can't stop pedaling. The organised retail industry in India is
worth Rs 900 crore (Rs 9 billion) and counting. Who will win the race to be No 1? Will Pantaloons'
size breast the tape or can Trent's cautious optimism survive the distance?
1Pantaloons' marketing and promotion costs were 3.34 per cent of sales. As the number of outlets
went up from around 20 in 2002 to 44 in 2003, the chain's spends on advertising and promotions
were down to 2.84 per cent of total income in 2004.
2In comparison, Trent advertising and promotion spends were 11.4 per cent of total income in 2004,
compared to 12.3 per cent in 2003, for a relatively smaller scale of operations.
3In FY 2004, Trent spent 6 per cent of its turnover on employee costs (the figure hasn't changed for
two years, even though the number of stores has increased from eight to 17). On the other hand,
Pantaloons' employee costs as a percentage of total income have gone up from roughly 3 per cent
in 2001 to 4.17 per cent in 2004
4That's not too much, especially if you consider that the number of employees has doubled in FY
2004 to 3,500, from 1,700 in 2003. (By April 2005, Pantaloons had close to 6,000 employees,
mostly at the front end.)
5Since 2002, Pantaloons' share price has moved from Rs 30 to Rs 882 (April 25, 2005) currently.
6Over the same period, Trent has climbed from Rs 71 to Rs 580.95. "Pantaloons' high reliance on
debt to finance its growth remains a cause of concern," says the 2004 Fitch report on the retail
industry
7Pantaloons' high reliance on debt to finance its growth remains a cause of concern," says the 2004
Fitch report on the retail industry. Pantaloons' debt-equity ratio was 1.86 as of 2003-04, compared
to 2.17 in 2002-03. Trent's debt-equity ratio has remained fairly stable at 0.001 per cent in the
same period.
8Consultants refuse to give their verdict on which player will be strongest in the long run. As Biyani
himself admits, "There is no ideal retailing strategy to follow."
7. An Overview of Pay Per Click (PPC) Advertising
By John V. W. Howe
Pay per click (PPC) advertising has revolutionized advertising on the Internet. This allows for
very targeted advertising to Internet users who are searching for the particular item that is being
advertised. Google Adwords and Yahoo Search Marketing are the two major PPC programs on
the Internet today. Microsoft AdCenter is a recent newcomer to PPC programs
8. Behavioural response to sales promotion tools: a Hong Kong study
Gerard Prendergast, International Journal of Advertising, Vol. 24, No. 4, 2005, pp.467-486
Supermarkets are heavy users of sales promotion devices and need to be able to assess the
effectiveness of these tools. Consumer response (brand switching, purchase acceleration, stockpiling,
product trial, spending more) to five different sales promotion tools (price discounts, in-store
demonstrations, coupons, sweepstakes and games, and 'buy one get one free') was investigated
through a survey of 206 supermarket shoppers in Hong Kong. Price discounts and buy-one-get- one-
free offers weddcfe felt by the consumers to be the most effective promotional tools for inducing
purchase acceleration, stockpiling and spending more. In-store demonstrations were felt to be mainly
effective in encouraging product trial. Coupons were considered effective mainly in inducing
stockpiling and purchase acceleration. Sweepstakes and games, in contrast, were felt to be relatively
ineffective in terms of generating all types of consumer response. Recommendations for marketers
are presented, along with suggested directions for future research.
9. The effect of product sampling on product trial, purchase and conversion
Dalton McGuinness, Prof Philip Gendall and Stephen Mathew, International Journal of Advertising,
Vol. 11, No. 1, 1992
Although several claims have been made about the effectiveness of product sampling as a sales
promotion technique, there is relatively little published research in support of these claims. A study
of 433 New Zealand household grocery shoppers examined the sampling of three newly-launched
brands of toothpaste, shampoo, and dish washing liquid. The rates of sample trial measured were
considerably higher than those commonly reported in the literature, but purchase and conversion
rates were somewhat lower. There was little evidence that product sampling had any influence on
conversion to the sampled brands, except when recipients actually used the samples or subsequently
purchased the sampled brands as a result of trial. Overall, the samples were not accurately distributed
to the brands' most likely prospects, although selective distribution was found to be a worthwhile
objective because members of each target market tended to respond well to sampling.
10.Brand attitudes as measures of advertising effects
Greene, Jerome D & Stock, J Stevens, Market Research Abstract from: Journal of Advertising
Research, Volume 6, Number 2, June 2006,
The majority of advertising research deals in one form or another with conscious consumer responses
to advertising itself: aided recall, recognition, playback, believability, attitudes towards advertising
and the like. The authors feel that the best way of evaluating advertising is to discover the change it
makes in consumer attitude or behaviour by measuring the number of consumers who react
favourably to the brand when the advertising is run and the corresponding number when the
advertising is not run. Experiments using two matched sample panels are described. The authors
show how to measure advertising effects by comparing brand attitudes of the "exposed" and the
"unexposed" panels both of magazine and television advertising. In fact, comparable procedures have
been devised so that it is possible to compare the effectiveness of television and magazine
advertising.
RESEARCH OBJECTIVES
MAIN OBJECTIVE-
To find out the influence of Advertising and Sales promotion on the sales of the Big Bazaar
SECONDARY OBJECTIVES-
1To find the most effective tool of Sales promotion technique to entice customers used by Retail
businesses.
2To study various advertising and sales promotion techniques used by Big Bazaar.
3To find out the influence of Advertising and Sales promotion on the sales of Big Bazaar.
4To find the effectiveness of the Brand recall and Recognition of Big Bazaar.
5To find out the ranking of Big Bazaar with its relative competitors as per the customers.
6To find certain new techniques that Big Bazaar can adopt to improve its services
RESEARCH METHODOLOGY
MEANING OF RESEARCH- Research is an active, diligent, and systematic process of
inquiry aimed at discovering, interpreting, and revising facts. This intellectual investigation produces
a greater knowledge of events, behaviors, theories, and laws and makes practical applications
possible. The term research is also used to describe an entire collection of information about a
particular subject, and is usually associated with the output of science and the scientific method
HYPOTHESIS- Sales promotion of the Big Bazaar influences the sales of the Big Bazaaras
compared to other attributes.
RESEARCH DESIGN
DESCRIPTIVE RESEARCH- Descriptive research includes surveys and facts findings
enquiries of different kinds .The major pupose of Descriptive research is the description of the state
of affairs ,as it exists at present. It provides the data about the population or universe being studied .
Descriptive research is used when the objective is to provide a systematic description that is as
factual as accurate possible . In this project I have to find whether Advertising and sales promotion
influences the sales of the Big Bazaar ,therefore my research is descriptive.
SAMPLE SIZE- The sample size that I have taken is 100 units ,out of which the number of
male and female were as follows-
Male- 43 in number
Female- 57 in number
SAMPLE AREA- Since the research is on Big Bazaar at SAHARA MALL situated Gurgaon ,so
the sample area that is covered is as folows-
PRIMARY AREA – Areas near the mall or situated in gurgaon
SECONDARY AREA- Areas of Dwarka .
SAMPLE DESIGN- Simple random method
SOURCES OF DATA COLLECTION- Data collected in this project is both collected

both ffom both primary and secondry sources of data collection which are as follows-
PRIMARY DATA - Interview, Questinnaire
SECONDARY DATA - Internet, Magzines, Books, News Paper etc

DATA ANALYSIS
1. Frequency to visit market for shopping
Cumulative
Frequency Percent Valid Percent
Percent
Daily 10 10.0 10.0 10.0
Twice a week 40 40.0 40.0 50.0
Fortnightly 23 23.0 23.0 73.0
Monthly 27 27.0 27.0 100.0
Total 100 100.0 100.0
Frequency to visit market for shopping
45
40
35
Frequency
30
25
20
15
10
5
0
Daily Twice a week Fortnightly Monthly
FINDING- Maximum people that is 40% like to visit market twice a week, 27
% of the people prefer to visit monthly, 23% of people visit fortnightly and very little percentage that
is 10% like to visit daily to the market.
2. Like shopping during sales promotion offers
Cumulative
Frequency Percent Valid Percent Percent
Highly agree 24 24.0 24.0 24.0
Agree 57 57.0 57.0 81.0
Not sure 15 15.0 15.0 96.0
Disagree 4 4.0 4.0 100.0
Total 100 100.0 100.0
Like shopping during sales promotion offers
60
50
Frequency
40
30
20
10
0
Highly agree Agree Not sure Disagree
FINDING- Sales promotion is very effective tool to entice people for shopping as great number
of people that is more than 50% agree that they like to shop during various sales promotions.
3. Most attractive sales promotion offers
Cumulative
Frequency Percent Valid Percent
Percent
Discount sales 53 53.0 53.0 53.0
Buy 1 get 1 free 19 19.0 19.0 72.0
Free gifts 17 17.0 17.0 89.0
Exchange offers 6 6.0 6.0 95.0
Loyalty programe 2 2.0 2.0 97.0
Games and contests 3 3.0 3.0 100.0
Total 100 100.0 100.0
Most attractive sales promotion offers

Exchange Loyalty
offers programe Games and
contests
Free gifts
Buy 1 get 1
free Discount sales
FINDING- Among the various sales promotions offered by the Big Bazaar discount sales is the
most preferred sales promotion by the customers. Around more than 50%of the people like to
shop during discount sales.
4. Visit to Big Bazaar
Frequency Percent Valid Percent Cumulative Percent
Yes 80 80.0 80.0 80.0
No 19 19.0 19.0 99.0
3.00 1 1.0 1.0 100.0
Total 100 100.0 100.0
Visit to Big Bazaar
90
80
70
Frequency
60
50
40
30
20
10
0
Yes No 3
FINDING- Around 80% of people visit to Big Bazaar out of the 100 people surveyed.
5. Frequency to visit Big Bazaar
Cumulative
Weekly 14 14.0 16.9 16.9
Fortnightly 11 11.0 13.3 30.1
Monthly 28 28.0 33.7 63.9
Sometimes 30 30.0 36.1 100.0
Total 83 83.0 100.0
Missing System 17 17.0
Total 100 100.0
Freequency to Visit to Big Bazaar
35
30
25
Frequency
20
15
10
5
0
Weekly Fortnightly Monthly Sometimes
FINDING-Maximum people visit sometimes to big bazaar ,that less than monthly though the
difference between the people who visit monthly and who visit sometimes is very insignificant.
6. One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Low price Attribute inducing

82 4.29 .962 .106
shopping in Big Bazaar
Sales promotion attribute of big

83 3.99 .930 .102
bazaar
Quality in ambience in big bazaar 83 3.42 1.298 .143
Innovative Advertising of Big .123

83 2.90 1.122
Bazaar
Essence of Indian’s in Big Bazaar 83 2.81 1.273 .140
Convenience in shopping at Big

83 3.66 1.451 .159
Bazaar
One-Sample Test
Test Value = 4
95% Confidence
Interval of the
Difference
Lower Upper
Low price Attribute

inducing shopping 2.755 81 .007 .29 .08 .50
in Big Bazaar
Sales promotion
attribute of big -.118 82 .906 -.01 -.22 .19
bazaar
Quality in ambience
-4.058 82 .000 -.58 -.86 -.29
in big bazaar
Innovative
Advertising of Big -8.902 82 .000 -1.10 -1.34 -.85
Bazaar
Essence of Indian’s
-8.535 82 .000 -1.19 -1.47 -.91
in Big Bazaar
Convenience in
shopping at Big -2.119 82 .037 -.34 -.65 -.02
Bazaar
FINDING-Among all the attributes of big bazaar only sales promotion has proved to be
significant that is greater than .05 therefore the hypothesis taken that sales promotion influences
the sales of the Big Bazaar is correct.
7. Recall of biggest advertising campaign of Big Bazaar
Yes 28 28.0 28.0 28.0
No 71 71.0 71.0 99.0
4.00 1 1.0 1.0 100.0
Total 100 100.0 100.0
Recall of biggest advertising campaign of Big Bazaar
80
70
60
Frequency
50
40
30
20
10
0
Yes No 4
FINDINGS- Among the 100 respondents 71% were not able to recall its latest largest
advertising campaign ,which means that Big Bazaar is very weak at its advertising ,it has to
increase its reach through all kinds of media not only during its sales promotion campaigns but
also through out the year.
8. Statistics
Recall of biggest advertising campaign of big bazaar
Valid 19
Missing 0
Mean 1.95
Std. Deviation .229
Skewness -4.359
Std. Error of Skewness .524
Yes 1 5.3 5.3 5.3
No 18 94.7 94.7 100.0
Total 19 100.0 100.0
Recall of biggest adve rtising campaign of Big Bazaar
20
15
Frequency
10
0
Yes No
FINDING-Out of people who don’t visit to Big Bazaar that is 19 out of 100 only one person was
able to recall its promotional campaign ,which means it is not at all able to influence non visitors
of Big Bazaar through its advertising.
9. Statistics
Valid 80
Missing 0
Mean 1.70
Std. Deviation .537
Skewness .392
Std. Error of Skewness .269
Yes 26 32.5 32.5 32.5
No 53 66.3 66.3 98.8
4 1 1.3 1.3 100.0
Total 80 100.0 100.0
Recall of biggest adve rtising campaign of Big Bazaar
60
50
40
Frequency
30
20
10
0
Yes No 4
FINDING- Even out of people who visit Big Bazaar they were also not able to recall its latest
advertising campaign so it implies that people visiting Big Bazaar are due to other reasons but
not advertising
10. Preference for shopping rank wise at big bazaar
Cumulative
Very poor 12 12.0 12.1 12.1
Poor 10 10.0 10.1 22.2
Average 16 16.0 16.2 38.4
Good 20 20.0 20.2 58.6
Very good 41 41.0 41.4 100.0
Total 99 99.0 100.0
Total 100 100.0
Preference for shopping rank wise at big bazaar
45
40
35
Frequency
30
25
20
15
10
5
0
Very poor Poor Average Good Very good
FINDING-Consumers prefer Big Bazaar most for shopping, around 41% people rate it as very
good for shopping.
11. Preference for shopping at subhiksha
Cumulative
Very poor 13 13.0 13.1 13.1
Poor 16 16.0 16.2 29.3
Average 35 35.0 35.4 64.6
Good 25 25.0 25.3 89.9
Very good 10 10.0 10.1 100.0
Total 99 99.0 100.0
Total 100 100.0
Preference for shopping at subhiksha
40
35
30
Frequency
25
20
15
10
5
0
FINDING-Subhiksha one of the competitor of Big Bazaar has been rated average by most of the
customers.
12. Preference for shopping at Spencer
Cumulative
Very poor 21 21.0 21.2 21.2
Poor 15 15.0 15.2 36.4
Average 18 18.0 18.2 54.5
Good 28 28.0 28.3 82.8
Very good 17 17.0 17.2 100.0
Total 99 99.0 100.0
Total 100 100.0
Preference for shopping at Spencer
30
25
Frequency
20
15
10
5
0
FINDING -Spencer’s has been rated good for shopping by customers, so it has come out as the
closest competitor of Big Bazaar.
13. Preference for shopping at Vishal Mega Mart
Cumulative
Very poor 27 27.0 27.3 27.3
Poor 21 21.0 21.2 48.5
Average 13 13.0 13.1 61.6
Good 15 15.0 15.2 76.8
Very good 23 23.0 23.2 100.0
Total 99 99.0 100.0
Total 100 100.0
Preference for shopping at Vishal Mega Mart
30
25
20
Frequency
15
10
0
FINDING-Though the distribution is quite even in the case of Vishal Mega Mart but inclination
towards poor is more so most of the people don’t like to shop at Vishal Mega Mart.
14. Preference for shopping at Salasar
Cumulative
Very poor 27 27.0 27.3 27.3
Poor 36 36.0 36.4 63.6
Average 17 17.0 17.2 80.8
Good 13 13.0 13.1 93.9
Very good 6 6.0 6.1 100.0
Total 99 99.0 100.0
Total 100 100.0
Preference for shopping at Salasar
40
35
30
Frequency
25
20
15
10
5
0
FINDING-Most of the people term as shopping at Salasar as most poor experience therefore
does not like to shop there.
15. Statistics
Preference for Preference for

shopping rank Preference for Preference for shopping at Preference for
wise at big shopping at shopping at Vishal mega shopping at
bazaar Subhiksha Spencer mart Salasar
N Valid 99 99 99 99 99
Missing 1 1 1 1 1
Mean 3.69 3.03 3.05 2.86 2.34
Std. Error of Mean
.142 .117 .142 .155 .119
Std. Deviation 1.188

1.412 1.165 1.410 1.545
Skewness -.713 -.179 -.180 .174 .680

Std. Error of
Skewness .243 .243 .243 .243 .243
Preference for shopping at Big Bazaar as compared to its competitors
4
3.5
3
2.5
Frequency
2
1.5
1
0.5
0
-0.5 Big Bazaar Subhiksha Spencer Vishal Mega Salasar
M art
-1
Mean Std. Error of Mean Std. Deviation Skewness Std. Error of Skewness
FINDING- Big Bazaar is the most preferred destination as compared to its competitor
16. Recognition of logo of Big bazaar
Cumulative
Red and white 12 12.0 12.0 12.0
Blue and green 13 13.0 13.0 25.0
Orange and blue 74 74.0 74.0 99.0
Black and white 1 1.0 1.0 100.0
Total 100 100.0 100.0
Recognition of logo of Big bazaar
Black and Red and white

white Blue and
green
Orange and
blue
FINDING-About three-fourth people know the colour of its logo, so its brand recognition is
high.
17. Convenience during maha sale offers at big bazaar
Cumulative
Yes 26 26.0 26.0 26.0
No 44 44.0 44.0 70.0
Not sure 30 30.0 30.0 100.0
Total 100 100.0 100.0
Convenience during maha sale offers at big bazaar

Yes
Not sure
No
FINDING-44% of people do not feel any discomfort while shopping during Maha saving offers,
while 26 %feel discomfort and 30%are not sure about it.
18. Recognition of tag line of Big Bazaar
Valid
Frequency Percent Percent Cumulative Percent
Correct 60 60.0 60.0 60.0
Not correct 40 40.0 40.0 100.0
Total 100 100.0 100.0
Recognition of tag line of Big Bazaar
60
50
Frequency
40
30
20
10
0
Correct Not correct
FINDING-The picture is as clear as crystal, maximum people are able to recognize the tag line
of Big Bazaar ,so its brand recognition is high.
DEMOGRAPHICS
19. Gender of respondents
Male 43 43.0 43.0 43.0
Female 57 57.0 57.0 100.0
Total 100 100.0 100.0
Gender of respondents
60
50
Frequency
40
30
20
10
0
Male Female
FINDING-Out of total respondents 57% were females and 43%were males.

20. Age group of respondents
Cumulative
16- 25 years 77 77.0 77.0 77.0
25- 35 years 18 18.0 18.0 95.0
35 above 5 5.0 5.0 100.0
Total 100 100.0 100.0
Age group of respondents
25- 35 years
35 above
16- 25 years
FINDING-More than 75% of people belonged to the age group of 16-25 years during survey.
21. Occupation of respondents
Cumulative
Student 61 61.0 61.0 61.0
Businessman 4 4.0 4.0 65.0
Serviceman 32 32.0 32.0 97.0
Others 3 3.0 3.0 100.0
Total 100 100.0 100.0
Occupation of respondents
70
60
50
Frequency
40
30
20
10
0
Student Businessman Serviceman Others
FINDING-Out of 100 respondents 61% were students, 32%belonged to service class, 4% and
3% belonged to business and other classes respectively.
FINDINGS
1Maximum people that is 40% like to visit market twice a week, 27
% of the people prefer to visit monthly, 23% of people visit fortnightly and very little
percentage that is 10% like to visit daily to the market.
2Sales promotion is very effective tool to entice people for shopping as great number of people
that is more than 50% agree that they like to shop during various sales promotions
3Among the various sales promotions offered by the Big Bazaar discount sales is the most
preferred sales promotion by the customers. Around more than 50%of the people like to
shop during discount sales.
4Around 80% of people visit to Big Bazaar out of the 100 people surveyed.
5Maximum people visit sometimes to big bazaar, that less than monthly though the difference
between the people who visit monthly and who visit sometimes is very insignificant.
6Among all the attributes of big bazaar only sales promotion has proved to be significant that is
greater than .05 therefore the hypothesis taken that sales promotion influences the sales of
the Big Bazaar is correct.
7Among the 100 respondents 71% were not able to recall its latest largest advertising campaign,
which means that Big Bazaar is very weak at its advertising, it has to increase its reach
through all kinds of media not only during its sales promotion campaigns but also through
out the year.
8Out of people who don’t visit to Big Bazaar that is 19 out of 100 only one person was able to
recall its promotional campaign ,which means it is not at all able to influence non visitors of
Big Bazaar through its advertising.
9Even out of people who visit Big Bazaar they were also not able to recall its latest advertising
campaign so it implies that people visiting Big Bazaar are due to other reasons but not
advertising
10About three-fourth people know the colour of its logo, so its brand recognition is high
1144% of people do not feel any discomfort while shopping during maha saving offers, while 26
%feel discomfort and 30%are not sure about it.
12The picture is as clear as crystal ,maximum people are able to recognize the tag line of Big
Bazaar ,so its brand recognition is high.
13Big Bazaar is the most preferred destination as compared to its competitor
RECOMMENDATIONS & LIMITATIONS
Recommendations
1Big Bazaar should increase its aisle area for more convenient shopping to its customers
2It should improve its ambience as its closest competitors are having edge over it on this
parameter.
3Big Bazaar should have more of cash counters so that people does not have to stand in long
queue in order to get billing.
4Big Bazaar should work on its advertising ,though it is known for its creative advertising but
the message should reach to each of the target customer so should use more rigorous use of
all types of media.
5It should change its Tagline which gives the same message but is still easily distinguishable ,as
most of its competitors are having almost similar tag lines that creates jargon for customer.
6It can convert shopping in to a great experience by playing some good music.
7Big Bazaar has to improve its quality of products specially in apparels.
Limitations
1Time was the major constraint ,which prevented me to put in more effort.
2Some people left few questions unanswered.
3Some of the respondents were not ready to fill the questionnaire.
4Not all the respondents were cooperative thus it was difficult to convince them for filling up the
questionnaire.
5Some of the respondents might have got biased while filling up the questionnaire.
6I made my best efforts in conducting the research but might have lacked somewhere because of
lack of expertise in conducting such survey based researches.
LEARNINGS & CONCLUSOINS
Learnings
PROFESSIONAL LEARNINGS-
1Learnt to operate statistical tool SPSS.
2Learnt the process of research with the help of questionnaire practically.
3Learnt how to interact at the corporate level
PERSONAL LEARNINGS-
1Improved at my communication skills after interacting with different sets of people.
2Helped me to develop and maintain cordial relationships.
3Infused me with more confidence.
4Learnt how to remain patient during work.
Conclusions
Big Bazaar is the most preferred place for shopping by all the customers, its recall and
recognition level is high .Sales promotion is the only factor that is influencing its sales ,it has to
really work hard at its advertising campaigns ,there should be consistency in advertising and
should not be only during its sales promotion campaigns. It stands far ahead from its competitors
but to remain in competition it has to really improve in its services .As we know that now the
international retail giants like Wal-mart and Carrefour are coming to India and will be a great
threat to it, so it has to really work hard.
BIBLIOGRAPHY
WEB LINKS-
1http://www.media4exchange.com/
2http://www.wark.com/
3http://www.ibef.org/
4http://www.economicstimes.com/
5http://www.bigbazaar.com/
6http://www.etretailbiz.com/
7http://www.magportal.com/
8http://www.retailindustry.about.com/
9http://www.adpunch.com/
10http://www.hindubusinessline.com/
BOOKS REFERED-
1 Belch. E. George and Belch. A. Michael, “Advertising and Promotion “Sixth Edition, Tata
Mcgraw Hill.
2 Kotler Philip,” Marketing management “Eleventh Edition, Pearson Education.
3Beri G.C., ”Marketing Research” Third Edition, Tata Mcgraw Hill.

ANNEXURE
Questionnaire on Advertising and Sales promotion of Big bazaar
Date-------------
Q. No.--------------
Centre-------------
Non -Users
Dear Sir /Madam
We are doing a brief survey to find the effect of Advertising and Sales promotion on sales of Big
Bazaar .We would be grateful if you spare few minutes and participate in it. Thank you for your
cooperation.
1.How often do you visit market for shopping?
Daily Twice a week Fortnightly Monthly
2.You like to shop during various sales promotion offers –
Highly agree Agree Not sure Disagree Highly Disagree
3.Which type of Sales promotion offers you find most attractive?
Discount sales
Buy 1 get 1 free

Free gifts
Exchange offers
Loyalty Programe
Games and Contests
Others, Specify__________________________________
Users
4.Do you visit Big Bazaar for shopping?
Yes No
If yes then how often?
Weekly Fortnightly Monthly Sometimes
5.What are the things that induce you for shopping in Big Bazaar?
Rank according to preference on scale of 1 to 5 (1= Very Poor, 5= Very Good)
ATTRIBUTES 1 2 3 4 5
LOW PRICE
SALES PROMOTION OFFERS
QUALITY IN AMBIENCE
INNOVATIVE ADVERTISING
ESSENCE OF INDIAN NESS
CONVINIENCE IN SHOPPING
6.Can you recall the biggest advertising campaign of Big Bazaar?

Yes No
If yes then specify _______________________________________
7.Given a choice for shopping ,where would you like to go?
Rank according to preference on scale of 1 to 5 (1= Very Poor, 5= Very Good)
BIG BAZAAR SPENCER SUBHIKSHA SALASAR VISHAL

MEGA
MART
8.What is combination of colors in logo of Big Bazaar?
Red and White
Blue and Green
Orange and Blue
Black and White
9.Do you feel the same comfort while shopping in Big Bazaar even during the ‘MAHA SALE
OFFERS’ also?
Yes No Not sure
10.What is the Tag line of Big Bazaar?
______________________________________
11.Can you suggest something that Big Bazaar can do to improve its services?
____________________________________________________________
___________________________________________________________
DEMOGRAPHICS
Name ______________________
Gender-
Male Female
Age Group-
16-25 Years 25-35 Years 35-above
Occupation –
Student Business Service Others
Income (per annum) –
Less than 2.5 lakhs 2.5- 4.5 Lakhs More than 4.5

Retail Industry Bigbazar

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PROJECT REPORT

SUBMITTED TO: SUBMITTED BY:

1Retail Industry in India

4.Literature Review 11-40

3Global Retail Industry – An Overview

4Major Player in Retail Industry

7.Data Analysis 43-64

9.Recommendations & Limitations 66

10.Learning & Conclusion 67

RETAIL INDUSTRY IN INDIA

Isse sasta aur accha kahin nahi

Glimpses of few Advertising and Sales Promotion Campaigns of Big Bazaar

Cost Effective ad for Surprisingly Inexpensive Big Bazaar

Retailing can be classified under two heads:

5Type of store cluster

Limited service retailers

Full service retailers

A franchise is a contractual association between a manufacturer, wholesaler, or service

Customers : Upper Class

Stock Management : 2 – 3 months

Strategy of Price Setting : Higher prices

Size : 30,000 – 1,00, 000 sq ft

Land Holding : Rental

Number of SKU’s : 1,00,000

Level of Service : High

Leading Players in the format : Sears, JC Penny, Karstadt Quelle

Customers : For all

Stock Management : 10 – 15 days

Strategy of Price Setting : Mixed Price

Size : 10,000 – 30,000 sq ft

Land Holding : Rental

Level of Service : Average

Leading Players in the format : Royal Ahold, Kroger

Customers : Medium or Low Class

Stock Management : 30 days

Strategy of Price Setting : Incredibly low

Size : Deep Discounters: 3000 – 5000 sq ft

Soft Discounters: 60,000-80,000 sq ft

Land Holding : Rental

Number of SKU’s : Deep Discounters: 1000 – 2500

Soft Discounters: 30,000 - 60,000

Leading Players in the format : Aldi, Lidl, Dollar General

Customers : Medium and Lower class

Stock Management : 30-45 days

Strategy of Price Setting : Lowering prices as much as possible

Size : 1,00,000 – 2,50,000 sq ft

Land Holding : Rental

Number of SKU’s : 50,000 to 70,000

Level of Service : Average

Leading Players in the format : Wal-Mart, Carrefour

Customers : Customers requiring convenience

Stock Management : 15 – 20 days

Strategy of Price Setting : High (Price higher than supermarket)

Size : 2000 – 3000 sq ft

Land Holding : Rental

Number of SKU’s : 2000 – 3000 [also eatables]

Level of Service : High

Leading Players in the format : 7-Eleven

Customers : For all

Strategy of Price Setting : Quite high prices

Size : 50,000 – 1,20,000 sq ft

Land Holding : Rental

Number of SKU’s : 5000